Planning for retirement is not just about saving money — it’s about making sure your money pays you regularly when you stop working. One of the smartest tools for this goal is ETFs (Exchange Traded Funds).
As your advisor, I’ll walk you step by step through the 10 best ETFs for retirement income, explain how they work, show easy dollar ($) calculations, and help you understand which type of retiree each ETF is best for.
Let’s begin 👇
10 Best ETFs For Retirement Income
1️⃣ Schwab U.S. Dividend Equity ETF (SCHD)
Let’s start with one of the most trusted dividend ETFs for retirement.
Why this ETF works for retirees
- Invests in strong U.S. companies
- Focuses on consistent dividend payments
- Lower risk compared to picking individual stocks
Income example (in dollars)
Assume you invest $100,000
Average dividend yield ≈ 3.7%
👉 $100,000 × 3.7% = $3,700 per year
👉 $3,700 ÷ 12 = $308 per month
Advisor note
This ETF is excellent if you want stable income + long-term safety.
2️⃣ iShares Preferred & Income Securities ETF (PFF)
This ETF is designed for retirees who want higher income.
Why it stands out
- Holds preferred shares (higher dividends than common stocks)
- Regular income focus
- Popular among income-focused retirees
Income example
Investment: $100,000
Average yield ≈ 6.3%
👉 $100,000 × 6.3% = $6,300 per year
👉 $6,300 ÷ 12 = $525 per month
Advisor note
Higher income, but prices may fluctuate more than basic dividend ETFs.
3️⃣ JPMorgan Equity Premium Income ETF (JEPI)
This ETF is famous for monthly retirement income.
Why retirees like it
- Pays income every month
- Uses smart strategies to generate cash flow
- Designed to reduce volatility
Dollar calculation
Investment: $100,000
Estimated yield ≈ 8%
👉 $100,000 × 8% = $8,000 yearly
👉 $8,000 ÷ 12 = $667 monthly
Advisor note
Perfect if you need monthly cash flow to pay bills.
4️⃣ Vanguard International High Dividend Yield ETF (VYMI)
Retirement income shouldn’t depend on one country only.
Why global exposure matters
- Invests outside the U.S.
- Reduces country-specific risk
- Pays solid dividends
Income example
Investment: $100,000
Yield ≈ 4.5%
👉 $100,000 × 4.5% = $4,500 per year
👉 $4,500 ÷ 12 = $375 per month
Advisor note
Good for diversification and protecting long-term income.
5️⃣ SPDR S&P Dividend ETF (SDY)
This ETF focuses on dividend reliability.
Why it’s retirement-friendly
- Companies with long dividend histories
- Lower risk of dividend cuts
- Suitable for conservative retirees
Dollar example
Investment: $100,000
Yield ≈ 2.4%
👉 $100,000 × 2.4% = $2,400 yearly
👉 $2,400 ÷ 12 = $200 monthly
Advisor note
Lower income today, but more stability.
6️⃣ iShares U.S. Treasury Bond ETF (GOVT)
This ETF is about safety first.
Why bonds matter in retirement
- Backed by government bonds
- Protects capital during market crashes
- Predictable income
Income example
Investment: $100,000
Yield ≈ 2.9%
👉 $100,000 × 2.9% = $2,900 per year
👉 $2,900 ÷ 12 = $242 per month
Advisor note
Best for retirees who value peace of mind over high income.
7️⃣ Global X SuperDividend U.S. ETF (DIV)
This ETF focuses on high-dividend U.S. stocks.
Why retirees choose it
- High income focus
- Monthly payments
- Broad diversification
Income example
Investment: $100,000
Yield ≈ 5.9%
👉 $100,000 × 5.9% = $5,900 per year
👉 $5,900 ÷ 12 = $492 per month
Advisor note
Great if you want strong income without managing stocks.
8️⃣ iShares Select Dividend ETF (DVY)
This ETF balances income and quality.
Why it works
- Strong dividend-paying companies
- Less risky than ultra-high-yield ETFs
- Suitable for long retirement periods
Dollar example
Investment: $100,000
Yield ≈ 3.8%
👉 $100,000 × 3.8% = $3,800 yearly
👉 $3,800 ÷ 12 = $317 monthly
Advisor note
A solid middle-ground ETF.
9️⃣ Invesco High Dividend Low Volatility ETF (SPHD)
This ETF focuses on calm income.
Why retirees like it
- High dividends
- Lower price swings
- Monthly income
Income example
Investment: $100,000
Yield ≈ 4%
👉 $100,000 × 4% = $4,000 per year
👉 $4,000 ÷ 12 = $333 per month
Advisor note
Good for retirees who fear market ups and downs.
🔟 Vanguard Dividend Appreciation ETF (VIG)
This ETF is for future-proof income.
Why dividend growth matters
- Companies increase dividends over time
- Helps fight inflation
- Income grows as you age
Example
Initial yield ≈ 1.8%
👉 $100,000 × 1.8% = $1,800 first year
If dividends grow over time, income may rise to:
👉 $2,500–$3,000 per year after several years
Advisor note
Best for early retirees or long-term planners.
🧮 Sample Retirement ETF Portfolio (Simple)
| ETF Type | Allocation | Estimated Income |
| High income ETF | 30% | $2,400 |
| Dividend ETF | 30% | $1,110 |
| Bond ETF | 20% | $580 |
| Global ETF | 20% | $900 |
| Total Income | $4,990/year |
👉 Around $415 per month from a $100,000 portfolio.
Also Read: 9 Worst Financial Products Sold as Guaranteed
💡 Advisor Tips for Retirement Income
✔️ Don’t chase only high yield
✔️ Mix stocks and bonds
✔️ Think monthly income needs
✔️ Reinvest dividends before retirement
✔️ Reduce risk as you age
✅ Final Thoughts
The best ETFs for retirement income are not about luck — they are about planning, balance, and consistency.
When chosen wisely, ETFs can:
- Pay you monthly or yearly
- Protect your savings
- Reduce stress in retirement
